Six points that newcomers to the cryptocurrency contract market must learn:
Today, I bring you a way to play contracts to help new investors avoid pitfalls, reduce losses, and wish for great wealth for all new investors!
1. Short-term trading
This is the most common way to play in contracts and is often the first method for newcomers entering the cryptocurrency market. This method carries high risks and often relies on luck to achieve profits, with earnings typically not covering a single loss.
2. Learn to take profits and cut losses
In contracts, taking profits and cutting losses is very important. The market is highly volatile, and prices can change rapidly. Setting stop-loss orders allows you to close positions in unfavorable market conditions, preventing significant losses. A good profit-taking strategy can help you secure profits and prevent losses from market reversals, while also helping you control your profit points.
3. Disciplined trading
In contract trading, greed, fear, and emotions often influence decisions, which is a major factor in losses. Before each entry, set your own take profit and stop loss levels, maintain your trading rhythm, and reduce emotional interference in your decisions. Set a trading plan for yourself, limit daily trading frequency, and avoid the mindset of trying to recover losses by entering new trades, which often leads to even greater losses.
4. Analyze the market
The cryptocurrency market has both trending and fluctuating conditions. During weekends, fluctuating markets are most common. In such conditions, long-term trades are not advisable; it is better to take profits quickly. Trending markets only appear for a limited time and are the easiest to trade; buy on dips and sell on highs for higher profits.
5. Analyze trends
If you can accurately judge trends, you have already won half the battle. Analyze daily and weekly candlestick charts to determine whether the market is in an uptrend or downtrend. Failing to do so and chasing after prices can lead to losses, leaving you with dismal results.
6. Position management and leverage techniques
Position management is crucial in contracts. For example, if your account balance is 1000, a margin rate of 5%-10% is ideal, which means 50-100. This way, you won't easily face liquidation. The size of leverage should be determined by market conditions; quick entries and exits with high leverage yield fast returns and high capital utilization, with profit-taking ideally at 20%-50%. Since market conditions change rapidly, learn to control your greed, knowing when to stop, as greedy individuals often face dire consequences. In summary, use high leverage for short-term trades and low leverage for long-term trades.
Advice for beginners: trading requires a learning mindset, a proper attitude, and not being influenced by emotions. Reasonably control your position and leverage, avoid greed and gambling, take profits timely, and don't give up even after losses. Avoid going all-in, take profits promptly, and remember that investing carries risks; proceed with caution (Wishing everyone prosperity and continuous success towards achieving financial freedom!)
#X超级应用转型 #T #加密概念美股 #美联储FOMC会议 #币安钱包TGE
